Filene Research Institute is partnering with Conductiv to use their permissioned data platform to drive credit union growth.
Conductiv, Inc., joins Filene Research Institute to improve loan approval rates and deposit open rates for credit unions via the use of permissioned data through a Custom Incubator project.
Filene is partnering with Conductiv, Inc. on this project to drive credit union growth by partnering leading credit unions with Conductiv and implementing Conductiv’s permissioned data platform.
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Credit unions are driven by both mission and margin, and manually decision a high percentage of applications. Credit Bureau data is good, but inherently imperfect making it difficult to determine credit worthiness of an applicant – particularly for low-FICO and no-FICO applicants. This is because bureaus don’t have transactional and account-level information stored in permissioned-protected data sources. The only way to obtain this information is for members to give credit unions permission to access fresh, accurate, income, tax return, cash flow, and other data on their behalf. Credit unions can fill this data gap with permissioned data to gain a clearer view of the member, recover lost loans and deposits, and lend better, faster, and more fairly.
The Custom Incubator aims to take a unique approach to addressing this lending data challenge by inviting 3 credit unions and Conductiv to collaborate. As a cohort, they will help create a framework for incorporating permissioned data into lending and deposit opening and will develop a heat map that illustrates the data that credit unions are using to increase approval rates by up to 47%.
“Filene believes that for the credit union industry to keep pace with competition and fulfill its mission to lend across all FICO bands, we must develop the capability to leverage all appropriate data, machine learning, and data science, and incorporate these components into lending operations and practices in a way that is FCRA compliant and fair to the member” says Megan Freshour, Incubation Director. “This Incubator is building a path forward to the future of data and lending.”
“We are on a mission to help credit unions win back lost loans and deposits by gathering income, cash flow, and other data digitally. Conductiv helps credit unions do less work while making more loans and helps them lend better, faster, and more fairly,” said Gopal Swamy, CEO of Conductiv. “We are excited to work with Filene and the incubator participants on this important initiative that will create a real game plan for credit unions to understand and use permissioned data to support both mission and margin.”
The Incubator started in June of 2023, and continued through June of 2024. The framework for permissioned data and a corresponding heat map will be developed and released in Q4 2024 for consumption by the credit union community.
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